How To: ERP Assessment In 6 Steps
Nowadays, life without an ERP solution is choosing to do things the difficult way. However, starting with ERP is quite a process and an investment, one only well-spend if you manage to successfully implement. Knowledge is power. ERP assessment helps you through this process and pinpoint your specific needs, goals and possible obstacles.
Implementing ERP is not only an investment; but also a time-consuming and intense task. Getting through such an implementation successfully requires planning and assessment. By conducting an ERP assessment and review procedure, you allow yourself to identify weaknesses and address them before they become an issue. In addition, an ERP readiness evaluation is a step you shouldn’t skip to estimate how ready you are for such an intensive and significant change.
As it’s such a big step to take, both organisational and financially, you want to make sure the deployment for your ERP is successful. In order for it to be effective, you need to define your ERP’s functionalities and asses the entire process.
For the assessment we can differentiate between working with ERP for the first time or upgrading your current ERP solution.
If you are new to ERP, you might want to identify any software or current systems that will become redundant after your ERP implementation. Or to evaluate which current infrastructure needs adaptation before installing ERP, to calculate and assess the total cost of ownership, to estimate your time frame in which implementation is possible and pinpoint possible reasons for delay.
When you want to upgrade/update your current ERP solution you want to evaluate the current programs, areas of improvement, how your business’s growth has impacted the system and to calculate costs and benefits of opting for a new and improved ERP solution.
When is it time to implement ERP? Well, there are a few questions you can ask yourself to estimate whether or not it is time to start looking for to streamline your operations.
ERP assessment in a few simple steps
Implementing an ERP solution will cause a 360-degree change in your way of working. For the better, of course, but it’s a change your company and employees need to get used to. Your team needs to be fully committed to this task. Being prepared for the entire process will help focus on the results, keep your team motivated, and prevent unexpected situations. During this step, you should ask yourself a few questions:
In this step, it’s time to determine our goals and needs. When defining your goals, you automatically think about what it is you expect from your ERP implementation, and which challenges this will solve in the short and long run.
You need to determine and map out the future of your company and all the current processes, as well as determine how ERP will improve each of these processes.
Don’t forget to establish your specific needs, which will translate into your company’s most indispensable ERP functionalities.
Considering your needs and goals, you can now measure how large of an investment you might need, or how much you want to spend on a potential solution. During this step two important calculations must be considered, being Total Cost of Ownership (TCO) and your Return On Investment (ROI).
Your business is completely ready for implementation and has determined its goals and needs when it comes to implementing an ERP solution. Now, it’s time to look at all the possible solutions and find your perfect fit. In this step, you will have to make a shortlist of potential vendors with each their benefits and shortcomings
Your previous list has been shortened to only a few ERP solutions. The hardest task here is to choose the one that perfectly matches with your goals, needs, and overall business philosophy. Before, making a decision ask the sellers/developers for a demonstration and involve the most important people on your team.
Don’t be afraid to ask the following general questions:
Beverage industry-specific questions:
One final step, before deciding on a suitable solution is to see how flexible your ERP solution will be. You must establish the limitation of your ERP in time and functionality. Can your solution grow when you grow, and how long will this solution last? For example, cloud-based solutions, in contrast to on-premise ones, have more flexibility and scalability options for the future. Make sure you weigh in the strengths, and limitations of all deployment models and choose the one that suits your business’s bottom lines.
Choosing an ERP solution is one of the most important decisions your firm will make, as it will have a long-term influence on your company’s success. Take the time to go through the entire assessment approach and make the effort to conduct a thorough and comprehensive examination. It will only help you to be well-prepared and choose the software that is a perfect fit for your beverage company.
Do you want to know what a beverage industry-specific ERP solution such as Drink-IT has to offer? Then don’t hesitate to ask NaviWorld VietNam, our experienced consultants for advice
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